Sky to sell stake in betting business

British broadcaster Sky has agreed to sell a controlling stake in online betting business Sky Betting and Gaming to CVC Capital Partners for as much as £720 million (€912 million). The deal values the unit at £800 million, Sky said in a statement on Thursday.

Sky, the largest pay-TV provider in the UK, will receive £600 million on completion and further deferred and contingent consideration of as much as £120 million. It will retain a stake of about 20 per cent in Sky Bet.

"This transaction will allow us to focus further on the substantial growth opportunities in our core international pay- TV business while realising significant value for our shareholders," chief executive officer Jeremy Darroch said in the statement.

Sky Bet was formed in 2001 and has grown to become one of the largest operators in the UK’s online betting and gaming market, through its partnership with Sky Sports and its track record of technology and product innovation.

The transaction is subject to regulatory clearances in the UK and Ireland and is expected to close in the first quarter of 2015.

Bloomberg